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How the insurance appraisal and umpire process works

Occasionally, an insurance company or their adjusters may be unwilling to approve a legitimate claim or to pay the present day, fair market value on a reasonable estimate from a Contractor.When this happens, the insured or policyholder usually has the right to invoke or ask for the appraisal process.

The Appraisal Provision, in most policies, allows the policyholder to hire an independent appraiser (like Compassion Roofing) to determine the damages or the value of their damages. In turn, the insurance company will also hire their own independent appraiser. These two appraisers will then get together and select an umpire. Compassion Roofing can also act as an Umpire but not both for the same client. The umpire is an arbitrator, or what you might call the judge. If a disagreement between the two appraisers arises, they can present their differences to the umpire, who will make a ruling. These three individuals are known as the Appraisal Panel. The object of the Panel is to determine The Amount of Loss. The Amount of Loss is the total dollar amount needed to return the damaged property (your roof, gutters, fence, siding,windows and/or any other damaged property) back to its original condition, either by repair or replacement.

Once the Appraisal Panel is set, the policyholder’ s chosen appraiser and the insurance company’ s chosen appraiser will review the documents, estimates, and differences between them. The two independent appraisers will try to discuss and resolve the differences in damageand in cost. The two appraisers will discuss their reasons for their position and try to come to anagreement.
Sometimes issues arise where the two independent appraisers can’t agree on certain items. In this event, the two appraisers will submit their difference to the chosen umpire. The three will discuss the issues and try to reach an agreed settlement of the differences. As stated above,the settlement or final number is called The Amount of Loss. The final amount is known as the Appraisal Award. Once any TWO of the three individuals on the Appraisal Panel sign the award…the dispute is over! The amount on the Award is binding and is paid by the insurance company, to the policyholder. This amount will be due and payable to the contractor as itreflects the final negotiated total amount for the roof replacement.

It should be noted that there is no recourse against an Insured for using the appraisal process.That would be unethical and illegal on the part of the insurance company. They are not allowedto raise deductibles or premiums or cancel your policy for invoking the appraisal process.

The appraisal process is a time consuming process and should not be invoked until after your insurance carrier has made it clear that they are unwilling to negotiate. Most insurance carriers attempt to be fair in their settlements, so appraisals are not always necessary. Compassion Roofing & Remodeling is a full service contractor and can help you through the entire process.